Flipkart, one of India’s largest e-commerce companies is acting tough on its hundreds of underperforming employees, as it has asked them to either meet targets or else get terminated with severance pay.
This decision by the Bengaluru based ecommerce giant that boosts nearly 30,000 employees, is likely to affect some 700 to 1,000 employees, reported Business Insider.
"In situations where employees do not make progress despite being put on a performance improvement plan, they are encouraged to seek opportunities outside the company where their skills can be better utilised," stated Flipkart in a statement.
“The cleanup is a part of the process of making Flipkart a lean organisation," said sources, as per Economic Times.
However, one can hardly blame Flipkart, as the move reflects the challenging times faced by the Indian online retail industry, as companies are looking for ways to save costs and increase growth. Even Snapdeal, an online marketplace, based in New Delhi is looking trim down the non-performing employees, while some 200 employees have left the company recently.
"This is a fairly common practice across various industries- especially in high performing internet organisations," Flipkart said.
However, industry experts believe that keeping the organisation lean is important to keep the company focused on goals, whereas, delaying the cycle is also not good for underperforming employees.
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